In response to the Biden Administration’s recent announcement of a release of crude oil from the US Strategic Petroleum Reserve (SPR), the American Fuel & Petrochemical Manufacturers (AFPM) has issued the following statement:
A global, coordinated release of oil and petroleum products from various SPRs can have a short-term calming effect on the supply vs demand imbalance we’re continuing to experience. But SPR releases cannot be the centre of this Administration’s strategy to confront inflation and high energy prices. At best, SPR releases are a short-term fix, they are not a solution. Stability and certainty is what global crude oil markets crave.
The surest way to improve stability is by:
- Increasing oil production from stable countries, including our own.
- Improving infrastructure and transit options to make it more affordable to move crude oil and petroleum products within the US and throughout North America.
- Taking steps to shore up US refining capacity.
Oil has no utilitarian value until it runs through a refinery. The US has lost 1.1 million bbl of refining capacity in the last two years as refineries have shuttered or begun conversions away from petroleum processing. Energy security depends on a strong US refining sector.
Read the article online at: https://www.tanksterminals.com/storage-tanks/01042022/afpm-responds-to-spr-releases/
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